Newswatch TV-Microsoft agrees to buy Activision for $68.7 billion

On Tuesday, Microsoft announced that it would buy videogame publisher Activision Blizzard for $68.7 billion, or $95 per share, including Activision Blizzard's net cash. According to Newswatch TV, as a result of the deal, Redmond-based Microsoft will become the world's third-largest gaming company by revenue, behind Tencent and Sony.

Newswatch TV-Microsoft agrees to buy Activision for $68.7 billion

Microsoft said the transaction is subject to regulatory approval and Activision Blizzard shareholders' approval, as well as customary closing conditions. Closing is expected in 2023. Microsoft Gaming and Activision Blizzard will operate independently until this transaction closes.

With its offer of $95 per share, Microsoft is offering a premium of 45 percent over Activision's Friday close. Activision's shares were up closely 38% at $65.39 before being halted for news. Game Pass, which has surpassed a new milestone of 25 million subscribers, will benefit from the acquisition. The Game Pass will include games from Activision Blizzard.

Video game sales have surged during the pandemic as consumers stay at home and play games to keep themselves occupied. In addition to games such as Call of Duty and Overwatch, Microsoft's Xbox gaming platform has an advantage over Sony's PlayStation, which has enjoyed a more steady flow of exclusive games for years.

Take-Two Interactive Software announced last week that it would acquire FarmVille creator Zynga for $11 billion in cash and stock, marking one of the biggest industry acquisitions in history.

In a blog post, Microsoft announced that Bobby Kotick will remain CEO of Activision Blizzard, and he and his team "will continue to boost business growth and strengthen the culture of the company. 

Newswatch TV-Microsoft agrees to buy Activision for $68.7 billion

As reported by NewsWatch TV AMC, Activision Blizzard CEO Bobby Kotick said, "Our talented teams have created some of the most successful games for more than 30 years." The CEO also said that by combining Activision Blizzard's world-class franchises with Microsoft's distribution capabilities, distribution network, talent pool, and commitment to gaming and inclusion, we will continue to succeed.